The aim of the bailout plans, stimulus packages etc are to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets.
The bail out plan is expected to
1. To Stabilize the economy
2. Improve Liquidity
3. Improve Investor Confidence
4. Reduce the impact of the financial crisis on the US Economy and GDP.
The US Senate. The bailout plan is intended to help the struggling financial institutions of the US and provide them with cash (in return for the illiquid assets they have which they cannot sell in the open market) which can be used to revive the fallen economy. At a later point of time the US Fed reserve may sell these assets back to these banks and recover a part or the full bailout money.
They both claim to want to fix the economy, but neither have a good plan to do it. They both voted for the bailout, or B.O.M.B. (Bush Obama McCain Bailout), which has done nothing to help the economy. In fact the bail out is going to hurt the economy much more than it will ever help. Only Bob Barr and Chuck Baldwin have good solid plans to fix the economy.
It is supposed to, yes.
An American soft drink company expanded operation there and jobs were added through the multiplier effect.
See: http://en.wikipedia.org/wiki/Bailout Bailout refers to the action of helping out somebody in trouble. You can compare the bailout in financial terms to the bail or parol we get for someone in jail. In bailout, a company with strong financial status offers to help a company that is in dire financial needs. Such a scenario is where the stronger company bails out the weaker one.
Actually there is no correlation between the bailout plans and the US elections. The plans were initiated by president George Bush to help the economy to recover from the crisis. Though he wasnt in the race for the president post, he initiated it and hence there is no basic connection between the two.
The stock market and the whole economy crumpled when the economic crisis started. The bailout funds and fed purchases have helped the banks generate funds to help them keep running their business. As a result, the investor sentiment has improved and the market economy has stabilized too.
the country could go into a deep recession. today the house rejected the bail out and the stock marketplunged 777 points. the economy is in critical need for some kind of help from the bush administration because the bush administration caused the problem in the first place
You and your spouse/partner can get help on your struggling marriage with the help of a marriage counselor, who will sit and talk with you, and help you both work through your problems with each other and yourselves.
Advantage: Are the major employer in the country and help keep the economy strong. Disadvantage: Everybody including polititions think they have plenty of money when the case is that they are usually struggling to get by.
The goal of the second New Deal was to help the farmers out of debt. The dust storms that struck the Midwest during the Great Depression gave the farmers of America an even harder time economically, so they needed more help coping with the effects of the struggling economy.
The Team would identify the companies that need help and purchase illiquid securities from them (Mortgage backed securities, Collateralized debt obligations etc) Buy purchasing these, the FED would be inducing liquidity into the market using which those companies can carry on their business. This would induce a chain reaction and help stabilize the economy.